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Cents per KM method

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Newbie

Views 662

Replies 6

Just wondering whether 5,000km limit is "per car" or for each income producing business activity. e.g. I have a full time job and I need to travel to Canberra for business purpose and also I work as a part time ridesharing (Uber) driver. Can I claim 4,100km under my work related car expenses and another 2,500 km under ridesharing?

I need a clarification whether it is for each business activity (say I run 3 businesses using the car) or irrespective of number of busineses and work related, I could claim maximum 5,000km per car.

 

The following from ATO website. Does that mean my wife and I both can claim 5,000km per car doing our own businesses using a single car and not 5,000km for each separate business activities?

 

  • Where you and another joint owner use the car for separate income-producing purposes, you can each claim up to a maximum of 5,000 business kilometres.

https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/vehicle-and-travel...

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Taxicorn

Replies 3

Yes, it is per car and per owner.

 

According  to  TD 93/177, it is the distance travelled by the taxpayer’s car, not the taxpayer that is relevant in calculating the kilometres.

6 REPLIES 6
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Best answer

Taxicorn

Replies 3

Yes, it is per car and per owner.

 

According  to  TD 93/177, it is the distance travelled by the taxpayer’s car, not the taxpayer that is relevant in calculating the kilometres.

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Newbie

Replies 1

Thanks. I understnd that TD 93/177 is withdrawn sometimes back. Is there any new Tax ruling on this?

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Taxicorn

Replies 0

I am sure that there is, but like most things the ATO like to keep things vague..

 

http://classic.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s28.25.html

 

 

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Community Support

Replies 0

Hi @MJUber,

 

@macfanboy is correct - we're just checking in with a specialist area to see if there is a more recent Tax determination which covers the situation.

 

We'll let you know when we hear back from our specialist area.

 

Thanks, JodieH.

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ATO Certified

Community Support

Replies 1

Hi @MJUber,

 

Thanks for your patience whilst we received further information from a specialist area regarding your query.

 

There is no new tax determination which has replaced TD 93/177. However, the information provided is correct as

the restriction on the amount you can claim is based on the distance travelled by you in the car during the year, and not the activity or activities. Therefore, you cannot claim more than an amount attributable to 5000km travel for your car under the rate per kilometre car expense deduction method even if your car travel during the year is 6600 km.

 

If you and your wife own the car jointly, under the rate per kilometre method for use of the car, then yes you have a maximum limit of 5000km (each) that you can claim for the distance you travelled in the car and your wife has a maximum limit of 5000km claim for her distance travelled in the car.

 

If you'd like to receive a ruling for your personal situation, you can apply for a private ruling.

 

Thanks, JodieH.

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Newbie

Replies 0

Thanks Jodie